Should I increase the rent?

When interest rates go down will rents follow? Nope.

Will banks lend high loan to value thus pushing the market price up even more? Yes

Will most landlords ,40% of which own their rented homes out right ,push for the market rate? Yes.

Will landlords despite the possibility of relatively small annual yields benefit from an asset in the long term of astronomical value despite relatively little input when compared to most businesses? God yes

Is it also true that the odd boiler or set of windows adds to that properties long term value hence the landlord ultimately benefits from the investment? Yes

Hard to feel sorry for landlords to be honest.

I think if the OP raises the rent to below market rate that would be a humane act..

Don't forget the value they give you as reliable, long-term, non-problematic tenants. It's not "charitable" to factor that in, it's business. Be mindful of whether too steep an increase could see you lose their tenancy, and/or cause difficulties in them paying you reliably.

I've not put up my tenants rent in the 7 years he's been there. I own the property outright so I make a modest profit every year £3000 or so. That £3000 is 250 hours that I don't have to work each year. It's currently about £400 below market rate per month but I don't care because he's looking after an asset that I will be able to sell eventually. People who buy to let are no better than companies like Thames water. They take an asset that people need, load up with debt then expect others to not only service that debt but to pay them profit on top for doing little more than being in the right place at the right time. Hopefully a future government will tackle the "market" in a reasonable way. Let councils borrow money to buy and build more house, get rid of right to buy, have a country wide flat rate of housing benefit and introduce some real competition to the market.

Because it does against the narrative that some LL have which is that they are providing a service for the poors who just were not smart or hardworking enough to buy property as an asset.

It's a business. Give them a couple of months notice and tell them you are increasing in line with inflation (5%), and will continue to review at the end of each tax year. I do think smallish annual increases are much easier to cope with than one huge hike. Every so often you can "freeze" the rent if you feel it's too much.

Can I ask a question?

Why do people assume tenants are often poor and on minimum wage? Is it because everyone's been fed the "poor tenant" narrative for years and that they're all downtrodden?

As a LL I don't accept UC so all my tenants are working tenants. I'm in the SE and have tenants on £300k a year, he's on a secondment from LA, owns property there. Another tenant who changes jobs every 2 years and doesn't want to be saddled with home ownership. Another tenant who took her family of 5 on 4 foreign holidays last year.

Not all tenants are poor, on minimum wage or downtrodden.

Some are but a lot aren't. As a LL of 25 years I've yet to come across a poor downtrodden minimum wage tenant.

This.

Sensible good advice!

To be honest anything less and OP just isn’t ‘decent’ and is an ‘asshole’. 🤣🤣🤣

I think an increase is really reasonable bit not necessarily to market rates.

I think the whole implied agreement with long-term renters is they pay a little below market rents because it benefits both parties.

The renter has reliable tenants and avoids any void/advertising costs/refurbishment costs. And avoids the risk of new tenants who may be undesirable, dirty, destructive, complainers, not paying rent etc.

And the tenant gets slightly below market rates as a reflection of them being good, reliable tenants who care for the property.

Sounds a bit selfish to me, Hoppinggreen; surely the least OP could do would be to pay for the actual holiday - and maybe give them the house as well?

If you were a decent human being OP you would let them off paying rent entirely for a few months so they could afford a REALLY nice holiday.
Maybe help them pack and offer to water their plants/look after pets while they are away too?

Why is anyone presuming they’re on minimum wage?

Maybe because it helps with the narrative of poor, crushed, underprivileged tenants and foul, greedy bastard landlords?

Never mind that each of them may be neither; as so often on SM the storyline has to be maintained, even if it means inventing things to suit

You said on your last post you can afford to keep the rent as is so I don’t understand why you’re asking the question here? Is anyone else confused?

It’s certainly not wrong for OP to increase rent after 6 years of no increases. It’s also not wrong for them to pay market rate.

I think you need to work on your maths.

Minimum wage is £11.44 per hour.

35 hours per week = £400.40

52 weeks per year = £20,820.80

Divide by 12 to get £1,735 per month.

Multiply by 3 adults to get £5,205.20 gross household income per month.

YANBU.

Its SO dangerous and fucking stupid to now start guessing what their income is so you can decide how much of it you reckon you are entitled to.

I dont think the discussion is whether the tenants can afford it, its whether its the right thing to do.

No its not, its £4968 and that's before tax

It seems like they might be able to afford a holiday after all, despite certain posters protesting on their behalf. 😉

The contempt for landlords could be felt through my screen.

You are not their friends, you are their landlord.

Yes.

Child benefit is another £184 per month based upon two kids.

My landlady is a fair and reasonable person, and I've been living here for several years. The rent is always paid on time and I look after the house as though it is my own. Her mortgage went up last year and my rent had to help her cover it, so my rent increased by 12%. It made me gasp a bit, but what choice do I have? This is my home. Small increases over time are better than a big hit all in one go OP. Better for your tenants and for you.

Child benefit on top as well?